Rates are GREAT right now, and are expected to remain relatively steady through the end of the year.
However, we still urge caution as to whether to float or lock a mortgage rate, as almost any global economic activity can give rates a reason to move quickly. But what might be going behind the scenes to influence rate movement? The Federal Reserve would like to raise the federal funds rate (the interest rate that banks trade balances/lend funds with each other). However, raising its interest rate could cause the dollar to rise in value, which would also cause the deficit to rise. If the deficit grows, it would slow the U.S. economy down, and push unemployment upwards. So, the Fed is allowing inflation to cure the Fed position a little more naturally. Thus, the “markets” and their investors expect that the Fed will be content with keeping the Fed funds rate where it is right now – near zero.
A little more food for thought: With oil dropping in price significantly, investors are seeking better places to put their money. More money into bonds will force fixed mortgage rates higher. Predictions are that the 30-yr mortgage could average 5.5% in 2015, and perhaps even reach 6% by the end of 2015. But, as you know, projections don’t always prove true. In a nutshell, rates are dependent upon the workings of the international monetary ecosystem.
In the meantime, you may also want to refer www.nmmortgage.expert/DailyRateLockAdvisoryfor this week’s thoughts of float/lock strategies). We always advise borrowers to play “safe than sorry”, but are happy to recommend safe “rate float” strategies.
| THE MORTGAGE PLACE RATES*
FOR Primary Residence (purchase only) As of 12/02/2014 *Programs require borrowers meet specific qualifications, not limited to credit scores, income, debt ratios, and other lender guidelines |
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| FIXED RATE Mortgages to $417,000 (Conforming) | ||||
| w/ 1 Point | APR | w/ no Point | APR | |
| 30-YR | 3.875% | 3.998% | 4.00% | 4.040% |
| 15-YR | 3.00% | 3.215% | 3.25% | 3.320% |
| FIXED RATE Mortgages $417,001 – $2,500,000 (Jumbo) | ||||
| w/ 1 Point | APR | w/ no Point | APR | |
| 30-YR | 4.125% | 4.231% | 4.375% | 4.397% |
| 15-YR | 3.75% | 3.936% | NQ | — |
| ADJUSTABLE RATE Mortgages to $417,000 | ||||
| w/ 1 Point | APR | w/ no Point | APR | |
| 5/1 ARM | 3.00% | 6.262% | 3.25% | 6.499% |
| 7/1 ARM | 3.25% | 6.169% | 3.50% | 6.404% |
| ADJUSTABLE RATE Mortgages $417,001 – $2,500,000 | ||||
| w/ 1 Point | APR | w/ no Point | APR | |
| 5/1 ARM | 3.125% | 6.359% | 3.625% | 6.831% |
| 7/1 ARM | 3.375% | 6.266% | 3.75% | 6.618% |
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Mortgages up to $2,500,000, other ARM Products & Interest Only programs are also available – Please call for Quotes. |
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Ginger Bowe Sullivan
The Mortgage Place
1640 Old Pecos Trail, Suite E
Santa Fe, NM 87505
Email: ginger@nmmortgage.expert
Website: www.nmmortgage.expert
Phone: 505-986-9080
Cell: 505-470-4441
Fas: 505-986-9150
NMLS #: 1191003 / 204403